The Eastern Co. reported lower sales and profits in 2025 as demand weakened in the heavy-duty truck and automotive markets, tariffs increased costs and the company cut expenses through restructuring.
Shelton-based manufacturer The Eastern Co. reported lower sales and profits in 2025 as demand weakened in the heavy-duty truck and automotive markets, tariffs increased costs and the company cut expenses through restructuring.
Eastern makes industrial components used in transportation and logistics, including truck mirror assemblies and reusable packaging used to ship parts between manufacturers.
In a fourth-quarter earnings announcement, CEO Ryan Schroeder said the company faced about $10 million in tariff-related costs during the year but offset some of that through price increases and other cost cuts. The company also took restructuring actions that generated about $4 million in annual savings and recorded roughly $2.5 million in restructuring charges.
The company said the restructuring involved personnel and facilities but did not provide details. Eastern’s overall workforce appears to have remained stable, with 1,246 employees as of Jan. 3, including 612 in the United States — the same as a year earlier.
Full-year net sales fell 8.7% to $249 million, from $272.8 million in 2024. Net income from continuing operations declined 57% to $6 million, or 98 cents per diluted share, compared with $13.2 million, or $2.13 per share, a year earlier.
Fourth-quarter sales dropped 13.7% to $57.5 million, from $66.7 million in the same period last year.
The company said the decline was driven mainly by lower shipments of returnable transport packaging products and truck mirror assemblies tied to weaker demand in transportation-related markets.
Orders also softened. Eastern’s backlog fell 10.5% to $81.1 million at the start of 2026, down from $89.1 million a year earlier.
Despite the slowdown, the company said it reduced outstanding debt by $8.7 million in 2025 and secured a new $100 million credit facility that it said will provide flexibility for growth and potential acquisitions.
Schroeder said the company is beginning to see signs that the heavy-duty truck market is stabilizing and expects demand to improve as customers begin replacing aging Class 8 truck fleets.
Eastern this week also disclosed that two of its directors — Charles W. Henry and Michael J. Mardy — will not seek reelection at the company’s 2026 annual meeting and will retire from the board when their terms expire. The board also decided to reduce its size from eight members to six directors.
